The latest figures confirm a sharp slowdown in the pace of activity in the Irish economy during 2001. GDP growth slowed from 12.7% year-on-year in the first quarter (Q1) of 2001 to 9.4% in the second (Q2) and 3.2% by the third (Q3).
The economy had been expected to slow as labour market conditions tightened. However, the slowdown was more pronounced than forecast, taking growth well below trend and pushing unemployment upwards. The main cause of the sharp downturn in the economy was the weaker global environment, in particular the shake out in the information and technology sector.
